Enterprise banking institutions WaFd, Inc. and EverBank Financial Corp have finalized a definitive merger agreement to form a unified, nationwide financial institution through a $3.9 billion reverse merger transaction.
Everbanks Financial Corp will be absorbed and integrated as a new entity to WaFd Inc per its merger agreement, which would leave the latter as the parent company. When that deal closes, the new company under that name will trade on Nasdaq stock market under EVBK (everbank financial corp)
This merger will put together the respective regional businesses of these two banks thereby creating the combined bank which will run 250+ physical branches, use different customer acquisition methods and also carry out lending operations which are commercially significant on a scale in major markets that are still in development.
Financial Metrics and Capital Ownership Structure
The transaction creates a compelling financial framework designed to accelerate long-term earnings growth and return on tangible equity. Upon full realization of cost synergies, the pro forma company expects to achieve a return on tangible common equity of approximately 15%.
For current WaFd, Inc. shareholders, the merger is projected to deliver approximately 29% earnings per share (EPS) accretion in 2027, with an estimated earn-back period for tangible book value dilution of less than two years.
Upon completion of the transaction, EverBank Financial Corp investors which include an investment consortium managed by Stone Point Capital, Warburg Pincus, Reverence Capital Partners, Sixth Street, Bayview Asset Management, and TIAA will collectively own approximately 59.2% of the combined holding company. Existing WaFd, Inc. shareholders will retain approximately 40.8% equity ownership.
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“Today, we’re starting down an exciting new path with the merger of EverBank and WaFd Bank. Simply put, our two banks are stronger together. The combination of EverBank and WaFd Bank will open many new opportunities for nationwide growth and financial performance. By joining together, we’ll leverage our existing scalable consumer and commercial banking platforms to deliver high-value products and services to clients across the country in the ways that best meet their unique needs and goals,” said Greg Seibly, Chief Executive Officer of EverBank.
“It is a privilege every day to work side by side with the WaFd team of bankers. This opportunity to partner with EverBank is an elegant fit, and it allows us to carry forward the ethos of WaFd and deliver improved returns for our shareholders. Both banks bring exceptional credit quality and strong capital to the partnership. We complement one another in several key strategic priorities. First, our core deposits supplement EverBank’s direct consumer online bank,” said Brent Beardall, President and Chief Executive Officer of WaFd.
Expanded Commercial Capabilities and Diversified Deposit Architecture
The strategic combination accelerates an ongoing pivot by both financial institutions toward high-yielding commercial banking, scaling down reliance on traditional consumer residential lending while expanding specialized loan origination channels. The merged platform will integrate EverBank’s established commercial lending verticals including commercial real estate bridge financing, fund finance, SBA lending, and life insurance premium financing with WaFd’s relationship-based commercial deposit network.
Additionally, the transaction significantly optimizes the bank’s funding profile by blending WaFd’s low-cost commercial deposits with EverBank’s nationwide direct-to-consumer online deposit platform. This multi-channel deposit gathering strategy minimizes reliance on wholesale funding while expanding wealth management opportunities by cross-selling WaFd’s Registered Investment Advisor (RIA) services to EverBank’s affluent retail customer base.
Transaction Timeline, Approvals, and Advisors
The merger is expected to close in early 2027, subject to customary regulatory approvals, approval by WaFd, Inc. shareholders, and standard closing conditions. The transaction is structured to be tax-free for common shareholders of both institutions.
